What fiduciary duty does a promoter have when acquiring property for resale to the corporation?

A promoter’s fiduciary duty when acquiring property for resale to the corporation primarily focuses on ensuring that the transaction is fair and beneficial to the corporation. In this context, the correct answer emphasizes the obligation to ensure the property is sold for fair market value. This duty arises because the promoter is acting in a capacity that requires them to prioritize the interests of the corporation over personal benefit.

When a promoter acquires property with the intent to sell it to the corporation, they must provide fairness in the transaction, as the corporation is relying on the promoter to act in its best interests. Selling at fair market value helps protect the corporation’s assets and ensures that shareholders are not shortchanged by potentially inflated prices that could result from self-dealing or conflicts of interest.

While other choices involve important concepts, they do not capture the core duty as precisely as ensuring fair market value does. For instance, disclosing profits made from the sale is indeed part of maintaining transparency, but the fundamental obligation revolves around the fairness of the transaction itself. Avoiding conflicts of interest is crucial as well, yet it fundamentally ties back to the duty to ensure fairness in transactions to protect the corporation's best interests.